US Dollar strength and Euro-Dollar bearish outlook amid key CPI and PMI data [Video]
|The markets this week present intriguing opportunities, particularly with the continued strength of the US Dollar. Despite limited volatility early in the week, key economic indicators like European CPI data and the anticipated PMIs on Thursday and Friday will guide trading strategies.
I see the US Dollar maintaining its upward trajectory. Tonight, Europe releases its CPI reports, with forecasts suggesting stability. Year-over-year CPI is expected at 2%, unchanged from previous data, while core CPI holds at 2.7%. Monthly CPI, however, may tick up slightly from -0.1% to 0.3%. This aligns with expectations of steady inflation, potentially supporting hawkish policies by the Federal Reserve over the ECB.
For Euro-Dollar trading, I remain bearish. Currently trading around 1.0592, I target shorting opportunities between 1.0590 and 1.06, with potential take-profits near 1.04. Consolidation may occur until PMI data is released, but I'm poised to act on any moves that validate these predictions.
Traders should monitor geopolitical developments, particularly any potential escalations between Russia and Ukraine, as such events could trigger unexpected volatility.
Stay tuned for updates as the week progresses, and remember to refine your strategies based on evolving market conditions.
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